Lets say you buy 1000 shares of XXX at $10.00 and you never sell. Then it drops from $10. to .50 and then reverses 1 for 10.
Now instead of 1000 shares you have 100 shares at $5.00. Now the stock drops to .50 again. Then reverse splits 1 for 10. Now you have 10 shares at $5.00
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So this is how it works.
Lets say you buy one of these iconic pump stocks that the exchanges leave trading on the market so they make $ when the pumpers use it every year.


